Answers - Vertical and Horisontal analyis

1. Vertical analysis (common-size) percentages for Vallejo Companys sales, cost of goods sold, and expenses are listed here.Vertical Analysis201220112010Sales100%100%100%Cost of goods sold60.5%63.3%65.4%Expenses25.0%27.5%28.2%Did Vallejos net income as a percent of sales increase, decrease, or remain unchanged over the 3-year period? Provide numerical support for your answer. (min 150 words) 2. Horizontal analysis (trend analysis) percentages for Spartan Companys sales, cost of goods sold, and expenses are listed here.Horizontal Analysis201220112010Sales96.2%104.8%100.0%Cost of goods sold101.0%98.0%100.0%Expenses105.6%95.4%100.0%Explain whether Spartans net income increased, decreased, or remained unchanged over the 3-year period. (min 150 words)